Occupancy Rate

Occupancy Rate is a hotel performance metric that measures the percentage of available rooms sold during a specific period. It is calculated by dividing the number of rooms sold by the number of available rooms and multiplying the result by 100. Occupancy helps hoteliers assess room demand, monitor capacity utilization, and evaluate operational performance alongside other revenue indicators such as ADR and RevPAR.

Formula: Occupancy Rate (%) = (Rooms Sold ÷ Available Room-Nights) × 100

For reporting periods covering multiple days, rooms sold refers to total room-nights sold.